What sections of the Counselor Realty Franchise Agreement address compliance with standards and policies/Franchise Policy Guidelines for Counselor Realty?

According to Counselor Realty's 2025 Franchise Disclosure Document, several sections of the Franchise Agreement outline the franchisee's responsibilities regarding compliance with standards and policies, particularly the Franchise Policy Guidelines. Item 22(c) specifies that franchisees must offer and provide all products and services, and continuously operate the business, in accordance with the Franchise Policy Guidelines and all applicable laws and regulations. This places a direct obligation on the franchisee to adhere to these guidelines in their day-to-day operations. Furthermore, Item 22(f) states that franchisees must comply with changes Counselor Realty may make to the Franchise Policy Guidelines, System, and standards, even if additional investment or expenditures are required. This clause ensures that franchisees remain current with any updates or modifications to the system.

Item 1 of the FDD mentions that the Counselor Realty System is described in both the Franchise Agreement and the Franchise Policy Guidelines, highlighting the importance of these guidelines in understanding the operational framework of the franchise. Section 13.2, as referenced in Item 17 regarding modifications of the agreement, indicates that while the Franchise Agreement itself generally cannot be modified, the Franchise Policy Guidelines and licensed Marks are subject to change by Counselor Realty. This gives Counselor Realty the flexibility to adapt its standards and policies as needed.

In practical terms, these provisions mean that a Counselor Realty franchisee must not only initially implement the Franchise Policy Guidelines but also stay informed about and adapt to any changes made by the franchisor. This could involve additional training, investment in new equipment or technology, or changes in marketing strategies. Failure to comply with these standards could potentially lead to breach of contract and subsequent penalties or termination of the franchise agreement. Therefore, prospective franchisees should carefully review the Franchise Policy Guidelines and understand their obligations to maintain compliance throughout the term of the franchise agreement.